Ethanol Blog

NEW YORK (DTN) -- Ethanol prices in Brazil declined during July through the first half of August as supplies increased, according to a report Monday by Cepea, a market research center based at Sao Paulo University.

The Cepea report revised higher projected Brazilian ethanol production for the 2013/2014 crop year by 5%. The crop year began April 1 and will run through March 31, 2014. According to the report, the country is now expected to produce 27.3 billion liters or 7.2 billion gallons of ethanol.

The report projects ethanol production in the South-central region at 25.28 billion liters, up 6.2% compared to the prior year.

Cepea said at the end of July hydrous ethanol prices ranged between $2.32 and $2.40 a gallon in Northeastern region, which accounts for just 2.5% of Brazil's total ethanol output. Those price quotes were 1.6% lower than June prices. No prices for anhydrous ethanol were provided for the region.

In the South-Central region, which is considered the sugarcane-belt and accounts for about 90% of Brazil's ethanol production, hydrous ethanol prices fell 0.4% to $1.86 a gallon in the first week of August, while anhydrous ethanol prices decreased 1.87% to $2.13 a gallon for the same period.

For the first two weeks of August, hydrous ethanol price fell 0.83% to $1.64 a gallon, the report said.

Brazil's anhydrous ethanol, which needs to be blended with gasoline before use in automobiles, is often exported to the United States. Hydrous ethanol, which doesn't need blending, is used in the domestic market.

George Orwel can be reached at george.orwel@telventdtn.com

(ES)

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